Oatly beats Wall Street forecasts as it continues oat milk expansion

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Oatly Group (NASDAQ:OTLY) AB forecast a 64% jump to US$690mln in full-year revenue for 2021 as it continues expanding across the world, beating Wall Street estimates of US$681mln.


The oat milk producer is on track to open a facility in Maanashan, China, which could push estimates even higher if it ramps production at a faster rate than anticipated.


Capital expenditure will be at the low end of the US$350-400mln range announced at the time of the IPO, which includes the self-manufacturing capacity expansion at Ogden, Utah, revealed today.


By the end of 2021, the Swedish group will have 600mln litres of available capacity.


In the six months ended 30 June, revenue surged 53% to US$146mln, with gross profit of US$38mln or a 26.4% gross profit margin.


Oatly entered two new markets, Switzerland and Ireland, and started work to open a new site in Fort Worth, Texas in 2023.


It also expanded its presence with McDonald’s in Mainland China and launched partnerships with KFC, Walmart and Metro Cash & Carry in the Asian country.


Chief executive Toni Petersson said 2021 has been “the most transformational year” in the group’s history after it debuted the market in May.


The IPO “has provided us with the capital to fuel new production capacity globally as we scale our business across three continents to meet the robust consumer demand for our leading oat-based brand,” he commented.


Shares added 3% to US$17.39 at open.

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